Can the minis built in wifi airport be capable of streaming airtunes and have an internet sharing at the same time? It seems like I got to turn off internet sharing so my airtunes works properly. I don't know much about networking.

You shouldn't have trouble doing both at the same time. Are you using WEP on the Mac mini to secure sharing? You might try turning that off to see if it makes a difference.

I don't think its on. When I put on internet sharing the airport express isn't detected ever. I don't get it, but if I turn it off it shows up. Right now its doable but not convenient as I would hope for. In the long run I was hoping to get the ipad and using internet sharing for surfing the web, and then have airtunes running the house stereo. Then use the ipad to control all the tunage while surfing the web. I hope I dont' have to buy anything else.

Devo the built in airport in my mini. I have my dsl modem connected directly to my mini. I then use the airport express to have "airtunes" out in my living room. When I turn on internet sharing the AE isn't detected. If I switch it off it shows up. I have a nintendo wii I got hooked up for shared internet when I want to buy some old games from the arcade days.

I was hoping to get the ipad and run both at the same time. Right now its fine how it is, but it won't be if I get a laptop or ipad. I want to be prepared and not buy something that won't work for me.

Devo thanks a million! So far so good. Airtunes is working and my internet network connection is detected so that should work. I have no way of currently testing both at the same time, because my nintendo is on a different input on my receiver which takes out airtunes input completely. I was sitting there waiting for the update I finally just restarted and it worked. No weird errors either in the airport express. I usually get a couple I have to ignore for it not to flash amber.

I should check to see if there is internet anyways on the ninty. I rarely use it but with the new netflix streaming dvd coming soon it could get a ton of use. I will report back.

I tested mine out (don't really use Internet Sharing) and it seems to hold after restarting. I'm not sure why your setup wouldn't do the same, but that was a problem with older versions of OS X. You might try searching for a fix or doing the simple stuff like repairing your disk permissions. I really don't know what to suggest.